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How good is the Intel Atom 330?

Not really, you're looking at around the pentium 3 era in terms of power IIRC, even then some of the P3's perform better due to having more cache. They are technically not very powerful at all, but they use very little power (about 4 Watts) which is repsonsible for their marketing appeal.
 
What do you intend to use it for?

I've been pleasantly surprised by mine. It managed to play a 720p video in WMP with only about 35% usage. While that may be largely accredited to the Intel GPU, it's still better than I expected.
 
Ah I guess putting Windows Server 2008 on there for some testing is out the question then?
I am running Server 2008 R2 on one, with AD DC, DNS, DHCP, WDS and WSUS roles enabled. It's not as responsive as a decent dual or quad core (I wouldn't want to use it as my main workstation) but as a basic server, this isn't a problem.
 
Well im not 100% sure yet. I guess it will be used for testing various things.

I will probably have things like, server 2003/2008 installed, some ubuntu, some freenas that sort of thing.

I starting think about getting a mini itx am2/+ as im a budget but want itx. Looking at the ZOTAC GF8200 Value Motherboard AM2+/AM2 Mini ITX
 
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